Hello CaitlinEB,
Thank you for your question,
Since your microphone test worked in AVD settings but cuts off in Teams, the issue likely lies within Teams or AVD's remote audio handling. Here are some advanced steps to try:
Check Teams Audio Settings in AVD
Open Microsoft Teams in AVD. Go to Settings > Devices. Make sure your microphone is set to "Remote Audio" (not another device). Test the microphone inside Teams.
Disable Audio Redirection & Manually Select Your Mic
On AVD, go to Remote Desktop settings. Navigate to Local Resources > Remote Audio settings. Ensure "Play on this computer" is checked but try unchecking "Record from this computer" to see if it makes a difference. Restart Teams and try again.
Update Your AVD Client & Teams
Ensure you're using the latest version of the Windows app for Mac. Also, check for updates to Teams within AVD.
Please let me know if these work, if not, I will check for further troubleshooting steps,
Best regards, HungLa - MSFT | Microsoft Community Support Specialist